Revolution Bars Group hit out at Covid policy-making in Scotland as it announced an “exciting return to normal trade” following investment in its venues.
The FTSE-listed firm, whose portfolio includes Revolution bar-restaurants in Aberdeen and Inverness, and one of its Revolucion de Cuba hospitality spots in the Granite City, said today (November 16) it was picking up where it left off prior to Covid-19.
But in annual results and a trading update ahead of First Minister Nicola Sturgeon confirming no new restrictions for businesses north of the border, chief executive Rob Pitcher said different Covid rules in devolved nations of the UK were unhelpful.
The introduction of vaccine passports in Scotland and Wales is extremely disappointing.”
Rob Pitcher, chief executive, Revolution Bars Group.
Mr Pitcher added: “The second half of the year began with a 14-week third lockdown, lasting until outdoor trading was allowed in England from April 12 2021 when we were pleased to open 20 bars.
“This followed with indoor trading, still under restrictions, from May 17 2021 when we had 63 bars from our portfolio open and trading.
“After this, the group looked forward to a return to normal trading on June 21 2021 and was disappointed to learn of the delay to ‘freedom day’ (in England) until July 19 2021.
“The challenges faced, and trading levels seen, with varying rules and restrictions has been exacerbated by the differing home nation rules.”
He continued: “We are particularly disappointed with the approach taken with Scotland and Northern Ireland, which has maintained significant restrictions far longer than England and Wales.
“The introduction of vaccine passports in Scotland and Wales is extremely disappointing and is this year’s version of ‘needing to eat a scotch egg to drink a pint in a pub’.
“However, restrictions on foreign travel have been beneficial to us with most people staying in the UK for a ‘staycation’.
“We offer a fun environment where people can enjoy a brunch with friends, a lunch with colleagues, a family dinner, or a full night out and because of this all-day offering we’ve benefitted from people staying in the UK for their holidays.”
Revolution, whose shares were down nearly 7.5% at 24.7p by the market close, reported a narrowing of pre-tax losses to £26.3 million during the 53 weeks to July 3.
This was compared with losses of £31.7m a year ago.
Total sales slumped to £39.4m in the latest period, from £110.1m previously, as the group and wider hospitality industry suffered the impact of lockdown closures.
At the end of the reporting period, Revolution operated 67 “premium” bars with a strong presence throughout the UK for its two retail brands: Revolution (48 bars), focused on young adults; and Revolucion de Cuba (18 bars), which attracts a broader age range.
Most of the group’s sales are derived from drink and food, with some late-night admission receipts driven by entertainment completing the sales mix.
Mr Pitcher said: “We are very excited to be back trading and doing what we do best.
“As we had hoped and expected, our young guest base was ready to return to our bars and we continue to be pleased with our level of trade, reflecting the fun and memorable experiences our teams create for our guests.
“Our strategy, and the investment in our brands and people, is showing real results.
There will be good opportunities for our brands to expand their estates.”
“Whilst the disruption caused by Covid has set back our timescales for expansion, we believe that post-Covid, our marketplace and the competitive landscape will be fundamentally different.
“There will be good opportunities for our brands to expand their estates at a much lower level of investment.”
Revolution said its recent investment included an accelerated refurbishment programme and a “progressive approach to moving away from being a national minimum wage employer”.